For the Quarter Ending March 2022
North American market primarily influenced by rising inflationary pressure on manufacturers due to high raw material cost coupled with anticipated disturbance in trade activities all across the region. Sudden escalation in crude oil value, as Russia announced special military operations on Ukraine, prices of several commodities skyrocketed under the pressure of soaring upstream cost. Traders were getting anxious regarding steep rise in prices of several commodities, due to looming threat of supply disruption in the global market, as operation may get halted due to ongoing war near Black Sea. Thus, post witnessing steep rise in prices, Sodium Lignosulphonate prices assessed around USD 757/MT during February. However, further price escalation is expected in next quarter under the influence of rising tension between two countries.
Consistent price revisions have been observed in Sodium Lignosulphonate in Asian market since January 2022, primarily driven by inflationary pressure amid stable to firm offtakes from the domestic market. Construction activities in China bounced back during the January-February month, owing to ease in coal related hurdles and dual energy policy restrictions in the country. Despite of spring festival in the country, builders maintained overall inventory level to sustain uninterrupted construction activities in the country. Sodium Lignosulphonate price heard hovered around USD 260/MT on Spot purchases in China during February. In the meantime, taking pressure from rising input cost in the global market on the back of hike in prices of imported commodities, Sodium Lignosulphonate prices rose effectively throughout the quarter in India. Expensive imports coupled with rising freight cost remained prime factors behind these significant hikes in prices across Indian market.
Huge burden of Inflation has been on construction sector since the Russia Ukraine conflict escalated. Middle eastern Sodium Lignosulphonate players witnessed frequent price revisions under the influence of changing demand supply pattern coupled with oscillating global crude oil value. As per the ChemAnalyst data, consistent hike in price of Sodium lignosulphonate was observed during first two month of this quarter which later declined by the mid of March. This fall was driven by changed market dynamics in China, led to a fall in global crude oil value coupled with widened demand supply gap. Sodium Lignosulphonate price was assessed around USD 763/MT CFR basis during February.
For the Quarter Ending December 2021
Despite firm offtakes from the domestic market Sodium Lignosulphonate price kept it downtrend continue throughout the second half of the quarter in USA. North American construction sector has been robust since a long time, that supported the consistent offtakes from the domestic market, which supported the price uptrend during first half of Q4. However, export activities from USA to other countries especially Asian remained dull, which resisted any price uptrend. Furthermore, Sodium Lignosulphonate availability remained ample to US market, which also supported this sharp decline in domestic market. Thus, Sodium Lignosulphonate price stood around USD 771/MT during December.
Construction activities in China resumed effectively during December again after a prolong period of speculations, which restarted the demand for construction chemical in the country. However, before the actual demand arise, prices kept on rising due to unavailability of material in the country. Further, during November, construction sector declined due to their own flaws, which has now started showing optimism. Thus, these resumption in construction activities has opportune traders to raise their offers, which stood around USD 275/MT FOB Qingdao during December. Meanwhile in India, post resumption in industrial activities, in effect of decline in new pandemic cases in India, Sodium Lignosulfonate price escalated unexpectedly till the end of October. In addition, spiralling freights cost, and crippling container availability also exacerbated the overall price scenario in the country. However, monsoon season led to a steep decline in demand during November and December, and prices slipped radically in domestic market.
European construction industry revamped during the month of November, as supply contains seems to be temporarily vanished. During November, demand fundamentals for most of the construction related chemicals improved significantly including Sodium Lignosulphonate. However, spiralling freight price and rising input cost eventually led to steep rise in prices of Sodium Lignosulphonate during this quarter. In addition, exorbitant hike in energy prices remained a major concern for regional market players, which was compelling them to pass on this price burden on consumers. Thus, Sodium Lignosulphonate price rose effectively throughout the quarter across European market.
For the Quarter Ending September 2021
In the North American region, the prices of Sodium Lignosulphonate (SLS) witnessed a marginal increment in the 3rd quarter of 2021 backed by the increased demand and abundant supply in the domestic market. Production of SLS has been strong since the second quarter. In terms of demand, it has been stagnant from the downstream paper industry during the first half of quarter 3. However, logistical problems and soaring feedstock costs caused concern across the region, thereby pressuring prices to go northwards. Consumption volumes from the feed industry remained stable along with the oil additive segment during Q3. In the first week of August price of SLS was assessed at USD 765/MT FOB Texas.
The Asian market observed a significant rise in the prices of Sodium Lignosulphonate during the third quarter of 2021 on the back of the consistent demand from the downstream construction sector. In India, the pricing trend traced an upward trajectory in the last week of August, supported by modest to firm demand from the domestic market, while facing domestic scarcity. Post resumption in industrial activities, in the effect of a decline in new pandemic cases in India, Sodium Lignosulfonate prices escalated unexpectedly in India and shot up from USD 908/MT to USD 1072/MT in Q3 2021. In addition, skyrocketing freights costs, and crippling container availability also exacerbated the overall price scenario in the country.
Middle East Africa
In Middle East Africa, the pricing trend of SLS continued to rally upwards during the 3rd quarter under a strong pull from the demand side and surging raw material cost. As per the market experts, the concrete admixture market remained challenging in Q3 despite global demand recovery post-COVID due to continued supply constraints in key raw materials and high freight costs. Translating gains in the Sodium Lignosulphonate pricing, several downstream concrete admixture producers increased their prices for various construction chemical product lines. In September, CFR Jeddah offers have been settled at USD 700 per MT due to underlined factors.
For the quarter Ending June 2021
Sodium Lignosulphonate (SLS) market showcased mixed sentiment in this quarter across North America region, bolstered by improved offtakes from the downstream manufacturers. Initially, during the month of April and May, prices kept rising due to supply shortage of upstream in USA. However, prices dragged normalcy in June with improvement in production activities from the US Gulf coast. In addition, in the meantime, manufacturers revealed that their margins declined due to market competitiveness and soaring feedstock cost. Thus, prices of SLS were accessed at USD 805/MT during the last week of June in USA.
Sodium Lignosulphonate market remained firm throughout the quarter across the APAC region during Q2 2021. In China, strong economic rebound pushed up the demand from the domestic construction sector. Meanwhile in India, prices declined during the month of May, under the pandemic mayhem in the country, that reduced the overall consumption of SLS. In May, sudden implementation of lockdown restrictions dented the overall demand from the construction chemical intermediate segment, which later improved during the month of June. Thus, prices of SLS revolved around USD 808.4/MT during June 2021 in India.
European market also had firm sentiments for Sodium Lignosulphonate during this quarter, backed by stable offtakes from the domestic construction sector. The demand from the downstream segments improved week over week, as the economic activities rebounded from the dull sentiments caused by pandemic. However, rising feedstock prices, followed by soaring freight and production cost also remained a major concerned for European manufacturers in the meantime.
For the Quarter Ending March 2021
North America had a firm demand for Sodium Lignosulphonate, dominated by paper and food segment of the regional market. Despite plants turnarounds and shortage of the feedstock chemicals amidst winter chills, supply remained consistent and satisfying all the need. However, prices showed a significant improvement during this quarter as the competitive market conditions led it to rise from USD 760/MT (January 2021) to USD 780/MT (March 2021) across Texas, USA. The raw material rates, extended small gains in the quarter but limited availability remained the key price driver.”
Prices of Sodium Lignosulphate (SLS) received firm support from the global uptrend as the product availability from the overseas stood restrained by a combination of factors during Jan-Mar period. Lack of Chinese shipments due to Lunar year holidays was heard tightening the powdered SLS supply throughout Asia which had already been on a bullish note due to soaring freight and currency fluctuations. Demand, majorly driven by the recovering construction sector led the prices to rise and reach USD 305/MT in the Chinese Market during March. Similarly, in Indian markets prices rose by more than 7% within the quarter and hovered around USD 569/MT.
The European market registered low demand for Sodium Lignosulphonate market from segments like paper and construction. Rapid surge in COVID cases and strict lockdown restrictions slowed down the construction activity of the region, even some places faced low production activities due to weather conditions. Traders indicated towards tightness as major European plant went offline, forcing buyers to plan for alternatives amidst widening demand-supply gap.
For the Quarter Ending December 2020
Demand for Sodium Lignosulphonate in the Asian market in Q4 2020 increased in comparison to the Q2 and Q3 2020 because of an appreciable increase in demand for concrete mixture and cement segments. As the construction industry regained stability in Q4 2020, the growth of Sodium Lignosulphonate increased in Asian countries like China, India, South Korea, Taiwan, etc. China being one of the leading traders of Sodium Lignosulphonate also experienced growth in its export demand across the region. Even though the petroleum industry was heard under pressure, owing to the oil and drilling activities, prices of Sodium Lignosulphonate have remained range bound.
Stuck by a new strain of Coronavirus, Europe imposed a partial lockdown in November in several part of the region due to which the paper and pulp industry remained closed. Owing to strict trading and travelling restriction and non-availability of raw material, the supply of the product was observed to be negligible. As an alternative, Calcium Lignosulphonate is being used in the end-use industries due to the easier availability of the raw material Calcium Hydroxide in comparison to sodium hydroxide.
A large number of small-scale industries are involved in the manufacturing of sodium lignosulphonate like Flambeau. Due to ease in lockdown, the paper and pulp industry regained stability, and the production of by-products Lignosulphonates consequently increased. Following the ease in availability of raw material, the production of Sodium Lignosulphonate also strengthened. The import of Sodium Lignosulphonate from European countries also increased, and the prices were observed to have increased in Q4 2020 in comparison to Q3 2020.